Report reveals procurement potential for small firms

1:25pm Monday 25th August 2008

THE chances of small businesses gaining public sector contracts in the South East have improved.

A report compiled and published by The Federation of Small Businesses (FSB) South East Policy Unit assesses the progress made by local authorities towards encouraging small businesses to make bids.

Hook businessman Tim Colman, who is procurement in Hampshire & Isle of Wight spokesman for the FSB, said: "Pressures on small businesses are increasing with rising fuel costs, the threat of recession, credit drying up and big companies taking longer to pay their bills.

"Procurement remains an under-used tool, which has the potential to play a key role in sustaining local communities."

The FSB report shows that local authorities are making steady progress towards encouraging small businesses to bid for public sector contracts.

In particular, the report - Public Sector Procurement: The Small Business Perspective - reveals that 36 per cent had split larger framework agreements into smaller lots to enable small businesses to bid for the work.

Two-thirds of local authorities now advertise details of low-value contracts on their websites, while 64 per cent use a simplified pre-qualification questionnaire for their low-value contracts.

However, Mr Colman said more can still be done by local authorities to encourage small businesses.

One common plea from small firms is for plain English to be used in procurement documentation.

A number of councils have attained Crystal Marks from The Plain English Council and councils should consider applying this when compiling procurement documentation.

"Awarding public sector procurement contracts to small businesses is cost-efficient, offers a quick turnaround time and greater efficiency.

"It makes good economic sense, good business sense, good environmental sense and it also helps to keep trade local," said Mr Colman.

Editor's Choice